In June 2007, the BSE had approached the Forward Markets Commission (FMC), the commodities market watchdog, for buying 26 per cent stake in NMCE. The valuation for the stake sale to BSE is not known, but the new capital infusion with a premium is expected to be around Rs 100 crore.

A senior BSE official, speaking on the condition of anonymity, said the exchange might eventually take control of the management of the demutualised online commodity exchange. However, the official declined to comment on the value of the deal because of a confidentiality clause.

The tie-up with BSE would help NMCE increase its trade volumes in agricultural and other commodities as it would then have access to the large BSE trading platform network besides its expertise in running a large bourse.

The BSE would become the second stock exchange, after the National Stock Exchange (NSE), which has a 15 per cent interest in NCDEX, to hold a stake in a commodity exchange.

At present, the Central Warehousing Corporation holds 26 per cent stake in NMCE, while the National Agricultural Co-Operative Marketing Federation of India (Nafed) and the Punjab National Bank, hold around 10 per cent each. Gujarat Agro Industries has a five per cent stake.

NMCE commenced futures trading in 24 commodities in 2002 on a national scale and the basket has grown substantially since then to include cash crops, foodgrains, plantations, spices, oil seeds, metals and bullion among others.

Last week, NYSE Euronext picked up a five per cent stake in MCX (Multi-Commodity Exchange) for Rs 240 crore. The commodity bourses are increasingly attracting investments due to their immense growth potential. Given the increased participation in commodity trading, the segment is expected to touch a volume of Rs 74,15,613 crore by fiscal year 2010, growing at a steady rate of about 30 per cent.